american eagle Controversies

Strike: In 2004, textile and apparel workers union UNITE HERE launched the "American Vulture" back-to-school boycott of American Eagle in protest of alleged workers' rights violations at the company's Canadian distribution contractor National Logistics Services (NLS). On the 2007 second-quarter conference call, CEO James O'Donnell clarified the American Eagle's relationship with NLS and its effect on business. He explained, “We owned NLS with the acquisition of Braemar back in 2000, and we subsequently sold off NLS in 2006, and we are currently a customer of NLS... We have really no involvement at all with Unite Here and NLS. Our only involvement with NLS is basically as a customer, and there have been some allegations made, I think, to some of, to the public about it affecting our business. I can tell you right now it has not affected our business. ” Abercrombie & Fitch lawsuits: Since 1999, Abercrombie & Fitch has sued American Eagle Outfitters at least three times for allegedly copying its designs and its advertisements. On all occasions, American Eagle prevailed in court under the statement that A&F cannot stop American Eagle from presenting similar designs, since such designs cannot be copyrighted in the United States. Nevertheless, American Eagle clothing designs have since trended away in appearance from Abercrombie & Fitch designs. The merchandise offered by American Eagle is considered to be "retro/vintage" cost-efficient clothing, whereas Abercrombie & Fitch merchandise has become an internationally known "near-luxury" line of clothing with "preppy", high-grade, and high-priced fashions, on the same level with that of companies such as the Polo Ralph Lauren company. Judges have generally ruled that giving Abercrombie exclusive rights to market its clothing in a certain way "would be anti-competitive."